AUD-Lesson 5_GRADUAL

Question 1

What is a non-sampling risk?

Answer 1

The error is not detected because there is a human error.

Question 2

What is a sampling risk?

Answer 2

The sample is not representative of the population, leading to the incorrect conclusion

Question 3

What are the two types of sampling risk errors?

Answer 3

Type I risk, and Type II risk.

Type I:
Is where the population is ok, but the sample is not good. This deals with efficiency

Type II:
The population is bad, but based on the sample the auditor thinks it’s ok. This deals with effectiveness.

Question 4

What are the random sampling methodologies?

Answer 4

Random Number Sampling
Systemic Sampling
Haphazard Sampling
Block Sampling

Question 5

What is stop-or-go sampling?

Answer 5

Is a special type of attribute sampling that allows the auditor to stop when sufficient data is gathered.

Question 6

What is attribute sampling?

Answer 6

Sampling that examines a sample of items from a population to determine what percentage of them contain a specific attribute

Question 7

What is variables sampling?

Answer 7

Dollars are tested. Such as account balances Is the balance accepted or rejected?

Question 8

What is random number sampling?

Answer 8

Numbered docuements are selected through random number tables or computer software.

Question 9

What is dollar-unit sampling, or CMA Sampling?

Answer 9

Is a form of sampling that selects items to sample by their dollar amount and their affect on the cumulative balance.